Help with child tax credit

sarmia

Hi everyone,

We had our baby in April and I have just applied for CTC. Income for 2006-2007 joint was £46,000 so we are entitled to £545 and an additional £545 for having a baby under 1 so a total of £20.00 per week. We have booked our little one in for childcare at a cost of £130 per week from Jan 14th '07 and so cant claim for this yet, though it is very likely that we will not get anything for the childcare element. When I rang up earlier to confirm when payments start I asked whether we need to fill a new form next April as this years wage will be a lot less as I am on maternity pay. My pay will for 2007-2008 once maternity pay taken off will be about £5500 and my partners will stay at around £25,000. The man on the phone said they could take that into effect if I worked it out and called back.

I had a look on the IR Tax credit form on the net and filled in the details, it said that we are still entitled to the £545 & £545 but then I filled it in for what would be next years child credits with the little one being 1 year and paying the £130 a week childcare which we will be with a 2007-2008 income of £30500 and it said that we would be entitled to £2112 ctc and £171 childcare element. So what I am trying to get at with out waffling on is........... next April do we fill in the same forms and put down this years incoming (£30500) keeping the £45,000 for now and then hopefully be entitled to more next year and then it will probably go back down to the £545 the following year.

Sorry to sound vague but I am a bit thick when it comes to this.
Thanks
Sarah

TheWaltons_3

sarmia wrote: »

Hi everyone,

We had our baby in April and I have just applied for CTC. Income for 2006-2007 joint was £46,000 so we are entitled to £545 and an additional £545 for having a baby under 1 so a total of £20.00 per week. We have booked our little one in for childcare at a cost of £130 per week from Jan 14th '07 and so cant claim for this yet, though it is very likely that we will not get anything for the childcare element. When I rang up earlier to confirm when payments start I asked whether we need to fill a new form next April as this years wage will be a lot less as I am on maternity pay. My pay will for 2007-2008 once maternity pay taken off will be about £5500 and my partners will stay at around £25,000. The man on the phone said they could take that into effect if I worked it out and called back.

I had a look on the IR Tax credit form on the net and filled in the details, it said that we are still entitled to the £545 & £545 but then I filled it in for what would be next years child credits with the little one being 1 year and paying the £130 a week childcare which we will be with a 2007-2008 income of £30500 and it said that we would be entitled to £2112 ctc and £171 childcare element. So what I am trying to get at with out waffling on is........... next April do we fill in the same forms and put down this years incoming (£30500) keeping the £45,000 for now and then hopefully be entitled to more next year and then it will probably go back down to the £545 the following year.

Sorry to sound vague but I am a bit thick when it comes to this.
Thanks
Sarah

Sounds about right... we get almost all of our childcare paid with an income several k higher than that.

We're not entitled to Working Tax Credit though, just the Childcare Element of Working Tax Credit.

jonnyb1978

Just done omething like this myself. The tax credits base things on the previous year. ie £46,000. Dont worry what your pay will be in years to come. They kind of work a year in arrears.
Last year we declared we had an income of £28,000 but now have just recieved a letter of declaration on what we actually did earn. For every week of Paternity and Maternity you subtract £100 from the total. Basically read whats on your P60 (Total pay before tax) and deduct the amount regarding Paternity and Maternity.

So although we declared £28,000 last year. On the renewal i have just filled in i only declard about £24,000.

This should show that they have under paid us and will be noted and payment should now be altered and upped for this coming year.

Also at this time, you inform them of any changes. ie. I never bothered with child care as it only went up £3.00 but once yours start i would inform them straight away as its a significant amount. They will take this into account and renew what you are entitled to.